Apple’s long-awaited foldable iPhone could arrive with a cost advantage thanks to a major drop in hinge prices. According to a new report, the hinge’s average selling price will fall to $70 to $80 after mass production begins, while previously, initial estimates had rounded the cost to $100 to $120. The reduction in cost could allow Apple to maintain a strong profit margin or make the foldable iPhone slightly more affordable for buyers.
Apple’s foldable iPhone could be cheaper than expected thanks to Foxconn’s optimized hinge production strategy
The hinge for the iPhone Fold, as some would like to call it, is being developed through a new joint venture between Foxconn and Shin Zu Shing, with the former holding a slightly higher stake. Both of these suppliers have joined forces to secure almost 65 percent of hinge orders from Apple, while Amphenol will produce the remaining 35 percent of orders. The strategic partnership ensures that Apple will maintain a tight grasp over quality control and stability for one of the most important aspects of a foldable device.
Apart from this, Luxshare-ICT could also potentially join as a hinge supplier after 2027, which could signal two main shifts in the market:
- Hinge prices may decline even further.
- The hinge itself is becoming a base for suppliers who compete for Apple’s contracts.
How Apple’s supplier strategy strengthens its Foldable iPhone plans
The cost reduction is not due to cheaper materials but smarter manufacturing, as Foxconn’s large-scale production capacity and optimized assembly processes are helping Apple reduce expenses without having an impact on reliability. This approach not only improves yields but is also good news for the supplier, which can profit from iPhone assembly at large and also keep profits from hinge production.
Shin Zu Shing remains part of Apple’s supply chain, but its contribution might not be that significant. This is because Foxconn leads the joint venture and captures most of the profits, which means there are fewer chances for SZS to grow in this regard. Overall, the foldable iPhone’s hinge plan reflects Apple’s strategy of achieving a balance between durability, performance, and manufacturing efficiency - a critical step for a device entering a new category.
As for the device, recent reports indicate that Apple is eyeing a 2026 launch for the foldable iPhone, featuring a 7.8-inch internal display and a 5.5-inch external display. The company is also slated to use an aluminum-titanium hybrid frame with minimal crease, thanks to the hinge. If Apple nails the cost, we could see the first foldable iPhone priced slightly lower than originally expected.
Source: Ming-Chi Kuo
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